EV Domination: Why Hydrogen Cars Are on Their Last Legs

EV Domination: Why Hydrogen Cars Are on Their Last Legs

It seemed obvious a decade ago that hydrogen-fueled vehicles would have a major place in the clean-fuel transportation infrastructure of the future. Small electric vehicles looked potentially viable from a cost and range perspective, but purchasers of some types of cars, as well as operators of large semitrucks and buses, were naturally going to be more inclined to use hydrogen. Hydrogen fuel cell companies like Plug Power (NASDAQ: PLUG) and Ballard Power Systems (NASDAQ: BLDP) saw an opportunity to emerge from small markets such as forklifts into the much larger markets for cars, trucks, and long-haul semis.

Pilot programs agreements with UPS and FedEx showed some promise, and companies like Toyota, Hyundai, and Honda hoped to push the technology and fueling infrastructure from the passenger-vehicle side. At worst, hydrogen seemed destined to be another common option alongside 100% electric vehicles. 

Instead, while the popularity of electric vehicles both large and small is taking off, hydrogen fuel cell vehicles have struggled to gain any sort of meaningful traction in the market. Hydrogen may already be destined to occupy only niche applications in the transportation and energy storage market. 

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Source: Fool.com